**Naranjo Company**

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $672,000 and budgeted direct labor hours were 28,000.

The average wage rate for direct labor is expected to be $40 per hour.

During June, Naranjo Company worked on four jobs.

Data relating to these four jobs follow:

| | Job 39 | Job 40 | Job 41 | Job 42 |
|-----------------|--------|--------|--------|--------|
| Beginning balance | $25,800 | $34,600 | $20,000 | $2,000 |
| Materials requisitioned | 17,700 | 23,600 | 11,500 | 13,200 |
| Direct labor cost | 8,800 | 20,700 | 6,150 | 4,100 |

Overhead is assigned as a percentage of direct labor cost.

During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.)

Jobs 41 and 42 remain unfinished at the end of the month.

**Required:**

1. Calculate the balance in Work in Process as of June 30.
2. Calculate the balance in Finished Goods as of June 30.
3. Calculate the cost of goods sold for June.
4. Calculate the price charged for Job 39.

(Round your answer to the nearest cent)

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**EcoScape Company**

Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state.

Each job is different, requiring different materials and labor for installing the systems.

EcoScape estimated the following for the year:

| | Amount |
|--------------------|---------|
| Number of direct labor hours | 6,810 |
| Direct labor cost | $68,100 |
| Overhead cost | $50,394 |

During the year, the following actual amounts were experienced:

| | Amount |
|--------------------|---------|
| Number of direct labor hours | 6,180 |
| Direct labor incurred | $67,980 |
| Overhead incurred | $50,367 |

**Required:**

1. Should EcoScape use process costing or job-order costing?
2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the overhead rate?

(Round your answer to the nearest cent)

3. What is the average actual wage rate?
4. What is the cost of an installation that takes $3,450 of direct materials and 30 direct labor hours?